GPU announces first quarter earnings increase.

PARSIPPANY, N.J.--(BUSINESS WIRE)--April 17, 1996--General Public Utilities Corporation (NYSE:GPU) today reported first quarter 1996 earnings of $108.3 million (unaudited), or $0.90 per share, compared to 1995 first quarter earnings of $75.5 million (unaudited), or $0.65 per share.

The increase in first quarter earnings was due primarily to higher sales from colder winter weather this year compared to last year and lower reserve capacity expense. Also contributing to the earnings increase were gains on the sale of securities.

"I am very pleased with our first quarter results," said James R. Leva, GPU chairman, president and chief executive officer. "Not only did we benefit from the colder winter weather, but we were able to continue our progress on lowering our overall cost structure.

"And, we took steps in the first quarter designed to do even more along that line. We announced the combination, under one management team, of the entire energy services and delivery business which is currently operated by Jersey Central Power & Light Company, Metropolitan Edison Company, Pennsylvania Electric Company and applicable portions of GPU Service Corporation.

"In addition, as part of the ongoing restructuring, GPU intends to offer a voluntary enhanced retirement program to more than 400 of its non-bargaining employees in Pennsylvania and New Jersey," Leva said.

Earnings for the twelve months ended March 31, 1996 were $472.9 million (unaudited), or $4.04 per share, compared to $116.3 million (unaudited), or $1.00 per share for the same period in 1995. The increase in the twelve months earnings was due in part to the net effect of several 1995 and 1994 nonrecurring items.

Excluding these nonrecurring items, the twelve months earnings would have been $376.4 million, or $3.20 per share and $307.9 million, or $2.66 per share, respectively. The same factors affecting the quarterly results also affected the results for the twelve month period. Also contributing to the twelve months March 1996 earnings increase were higher sales due to weather and increased new customer sales. Partially offsetting these earnings increases were higher financing expenses.

The 1995 nonrecurring items consisted of a reversal of $104.9 million (after-tax), or $0.91 per share, of certain future Three Mile Island Unit 2 (TMI-2) retirement costs written off by Metropolitan Edison Company (Met-Ed) and Pennsylvania Electric Company (Penelec) in 1994. This reversal of expense resulted from a 1995 Pennsylvania Supreme Court decision that overturned a 1994 Pennsylvania Commonwealth Court order, and restored a 1993 Pennsylvania Public Utility Commission (PaPUC) order allowing Met-Ed to recover such costs from customers. Partially offsetting this increase was a charge to income of $8.4 million (after-tax), or $0.07 per share, for TMI-2 monitored storage costs deemed not probable of recovery through ratemaking.

The 1994 nonrecurring items included the above mentioned TMI-2 write-off of $104.9 million (after-tax), or $0.91 per share. Also in 1994, there was a charge to income of $76.1 million (after-tax), or $0.66 per share, for early retirement program costs; and a write-off of $10.6 million (after-tax), or $0.09 per share, for certain postretirement benefit costs.

GPU is a registered electric utility holding company with three operating utility subsidiaries: Jersey Central Power & Light Company, Met-Ed and Penelec. The GPU System's utility subsidiaries annually provide approximately 42 billion kilowatt-hours of electricity for approximately 2.0 million customers. GPU also owns all of the common stock of Energy Initiatives, Inc., EI Power, Inc. and EI Energy, Inc. which develop, own and operate generation, transmission and distribution facilities in the United States and in foreign countries. -0-

                                                 GPU FINANCIAL RESULTS

Three Months Ended March 31 (Unaudited)             1996         1995

Sales to customers (gigawatt-hours) (Note 1)        11,384       10,684
Total revenues (000)                            $1,022,934   $  913,972
    Revenues other than those related
      to energy (000)                           $  675,085   $  639,050
    Energy related revenues (000)               $  347,849   $  274,922
Net income (000)                                $  108,253   $   75,497
Earnings per average share                      $     0.90   $     0.65
Average common shares outstanding (000)            120,640      115,340

Twelve Months Ended March 31 (Unaudited)            1996         1995

Sales to customers (gigawatt-hours) (Note 1)        42,171       40,796
Total revenues (000)                            $3,913,618   $3,626,279
    Revenues other than those related
      to energy (000)                           $2,677,722   $2,597,101
    Energy related revenues (000)               $1,235,896   $1,029,178
Net income (000) (Note 2) (Note 3)              $  472,891   $  116,283
Earnings per average share (Note 2) (Note 3)    $     4.04   $     1.00
Average common shares outstanding (000)            117,526      115,231

Note 1: Gigawatt-hour sales exclude interchange sales.

Note 2: The twelve months earnings for 1996 include a credit to income

of $104.9 million, or $0.91 per share, from the reversal of

future TMI-2 retirement costs previously written off.

Partially offsetting this increase was a write-off of $8.4

million, or $0.07 per share, for TMI-2 monitored storage

costs.

Note 3: The twelve months earnings for 1995 include charges to income

of $191.6 million, or $1.66 per share, consisting of a write-

off of future TMI-2 retirement costs ($104.9 million, or $0.91

per share); the costs of the early retirement programs ($76.1

million, or $0.66 per share); and the write-off of certain

postretirement benefit costs ($10.6 million, or $0.09 per

share).

CONTACT: General Public Utilities Corp., Parsippany

John T. Fidler, 201/263-6479

or 201/328-8494 (home)